Always-thoughtful Georgetown alum and level–80 economist-mage Ted Castronova has been thinking about the ongoing recession and, in an interesting thought exercise, traces it back to the virtual world.

An Exodus Recession?

“I thought we would not see a real-world recession caused by the removal of consumption energy into virtual environments until sometime in the far future. But I didn’t think about the possibility that the term ‘virtual environment,’ in its economic meaning, might expand to environments as diverse as Hulu and Facebook. Are people now spending enough time fiddling around with digital stuff that their interest in physical stuff has weakened to the point that it catalyzes an ongoing cycle of economic pessimism? Perhaps not. But some trends certainly point in that direction.”